2016-07-26

Shenzhen Court Orders Homebuyer to 1.1 Million Yuan for Breach of Contract

Fearful that buying restrictions announced on March 25 would deflate the housing market, in addition to making it impossible for him to borrow enough money under the new rules, a Mr. Zhang backed out of a deal to purchase a home. Mr. Zhang sued to get out of the contract. The seller counter sued for breach of contract and won. The court ordered the return of Mr. Zhang's 500,000 yuan deposit, but also ordered him to pay 1.1 million yuan in damages for breach of contract. The house in question was originally priced at 9.4 million, cut to 9.22 million after renegotiation.